Nov. 30 (Bloomberg) -- Qatar raised $5 billion from a bond
sale, the biggest from the Persian Gulf this year, as investors
snapped up debt from the world’s fastest growing economy.

The country, rated the third-highest investment grade at
Standard & Poor’s, yesterday sold dollar-denominated notes
maturing in five, 10 and 30 years. Investor demand reached $9.5
billion, according to a person familiar with the transaction,
who asked not to be identified because he was not authorized to
speak publicly.

“It clearly shows that global investors are very
comfortable indeed with the Qatar credit, as they should be,
given that it is one of the most blue-chip issuers in this
region,” said Chavan Bhogaita, head of markets strategy group at
National Bank of Abu Dhabi PJSC.

Investors are seeking debt from the oil-rich Persian Gulf
after a lull caused by the debt crisis in the U.S. and Europe
and Arab uprisings. State-controlled Abu Dhabi Islamic Bank PJSC
received more than $2 billion in bids for its $500 million sukuk
this month, while Bahrain raised $750 million and Abu Dhabi
Commercial Bank PJSC borrowed $500 million in Islamic bonds.

Qatar sold securities due in January 2017 to yield 3.18
percent, securities maturing in January 2022 at 4.63 percent and
bonds due in January 2042 at 5.83 percent, according to data
compiled by Bloomberg. The yield on the nation’s 5.25 percent
securities maturing in January 2020, which was part of Qatar’s
last sale in November 2009, rose seven basis points to 4.18
percent at 1:00 p.m. in Doha.

Fastest-Growing Economy

S&P affirmed Qatar’s sovereign credit rating on Sept. 26 at
AA with a stable outlook, citing “the government’s strong
reported fiscal and external balance sheets.” The country’s $81
billion economy will expand 19 percent in 2011, making it the
fastest-growing in the world for a second year, the
International Monetary Fund said in a report in October. The
government forecasts a budget surplus of 22.3 billion riyals
($6.1 billion) this year.

Qatar, which will host soccer’s 2022 World Cup, exported
its first cargo of liquefied natural gas in 1996. The country
reached its target of 77 million tons of annual LNG production
early in 2011, making it the world’s biggest producer.

The country will invest about $88 billion in infrastructure
for the World Cup, Enrico Grino, Qatar National Bank SAQ’s head
of project finance, said in May. Qatar Railways Co. will invite
the first bids for the Gulf Arab state’s planned $38 billion
railway network in the first quarter of next year, Group
Director Ghanim al Ibrahim said on Oct. 18.